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1935, the Chinese Government announced a new scheme
involving the definite devaluation of the Chinese
currency, and it was then felt that the time had come
when action must be taken in Hong Kong. As a preliminary
step the export of silver was prohibited, and this was
followed by a new Currency Ordinance taking over the whole
as warching for he
the
of the silver formerly held bot from note issues by the
three banks, as well as all the other silver
Colony, and setting up a managed currency. Since then
the policy which has been successfully pursued has been that of gradually allowing the Hong Kong currency to depreciate to approximately the same value as the Shanghai
dollar. There has been no difficulty in pursuing this
policy, and it is now generally agreed that it was the
right thing to do.